Ormat Technologies, Inc. · NYSE:ORA
Ormat Technologies — Q1 2013 Earnings Presentation
26 slides from Ormat Technologies's earnings presentation, May 8, 2013
Slide 1: First Quarter 2013 Earnings Call
Ormat Technologies, Inc. First Quarter 2013 Earnings Call May 8, 2013 Green energy you can rely on Copyright © 2013 Ormat Technologies, Inc.
Slide 2: Disclaimer
Disclaimer Information provided during this presentation may contain statements relating to current expectations, estimates, forecasts and projections about future events that are forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. These forward-looking sta
Slide 3: Agenda
Agenda • 2013 First Quarter Prepared Remarks • Quarter Highlights: Dita Bronicki, CEO • Operations update; Yoram Bronicki, President and COO • Financial Overview; Doron Blachar, CFO • Closing remarks: Dita Bronicki, CEO • Q&A 3 Copyright © 2013 Ormat Technologies, Inc.
Slide 4: Highlights
Highlights • Replaced two SO#4 PPAs tied to natural gas at the Mammoth complex with up to 21.5 MW of new long-term fixed price PPAs, with higher rates. • Paid one-time termination fee of $9.0 million • Signed 20-year PPA with Southern California Public Power Authority (SCPPA) for our 16 MW Wild Rose
Slide 5: Operations Update
Operations Update Yoram Bronicki, President and COO Green energy you can rely on Copyright © 2013 Ormat Technologies, Inc.
Slide 6: Operations Highlights
Operations Highlights • Power generation increased 4.2% • Performed pre-peak equipment maintenance and well work in certain plants • Progress in construction of new projects • Olkaria plant 2 startup • Mammoth G-1 and Heber 1 Repowering • Generation and energy prices were affected by congestion in t
Slide 7: Projects under Construction
Projects under Construction Fully Released for Construction Power May Qualify Projected Generating Projected # Project Location Purchase for ITC Cash Capacity (MW) Completion Agreement Grant 10 1 Heber Solar California By the end of 2013 (24,500 MWh /year) 2 Wild Rose Nevada 16 By the end of 201
Slide 8: Future Projects
Future Projects Projects under Various Stages of Development Projected Power Purchase # Project Location Generating Capacity (MW) Agreement 1 Crump Geyser (1) Oregon 10 - 2 Platanares(2) Honduras 35 3 Sarulla(3) Indonesia 42 4 Wister(4) California 30 Total 117 MW (1) Ormat has signed a 50:50 J
Slide 9: Future Projects: Exploration Prospects
Future Projects Exploration Prospects • Ormat's growth beyond 2013 will depend on the success in exploration efforts • Strong land position to support future growth Status of 41 Prospects Prospects: U.S. - 32; International - 9 Less than $1 million $3 million OR, 9 ID, 1 21 NV, 13 CA, 2 UT, 2 NM, 1
Slide 10: Product Segment
Product Segment • Strong performance of the product segment • Approximately $224 million backlog as of May 7, 2013 • The backlog includes: • Revenue for the period between March 31 and May 7, 2013. • $21.4 million revenues from the Thermo 1 order. Sales Expected to be Expected Until End of Recognize
Slide 11: Financial Results
Financial Results Doron Blachar, CFO Green energy you can rely on 11 Copyright © 2013 Ormat Technologies, Inc.
Slide 12: Total Revenues
Total Revenues Total Revenues Total Cost of Revenues Segment Contribution -10.6 million (8.0%) +1.4 million (1.5 %) 132.4 38% 42% 121.7 58% 62% 92.6 94.0 Q1 2012 Q1 2013 Q1 2012 Q1 2013 Q1 2012 Q1 2013 Electricity Segment Product Segment All amounts in million USD 12 Copyright © 2013 Ormat Technolog
Slide 13: Electricity Segment
Electricity Segment Revenues 9.2 9.3 $82.2 4.6 4.9 1.5 $71.1 Q1 2012 Contribution of Transition to SRAC Net loss on Reduced generation Reduction in energy Q1 2013 Tuscarora & derivative contracts rates in Puna and McGinness Hills Amatitlan • Average revenue rate was $66 per MWh in Q1 2013 compared t
Slide 14: Product Segment
Product Segment Revenues Cost of Revenues +0.5 million (1.0%) +2.4 million (7%) 50.1 50.6 34.6 37.0 Q1 2012 Q1 2013 Q1 2012 Q1 2013 All amounts in million USD 14 Copyright © 2013 Ormat Technologies, Inc.
Slide 15: Gross Margin
Gross Margin Combined Electricity Segment Product Segment 29.6% 30.9% 26.8% 24.8% 30.1% 22.8% 19.9% Q1 2012 Q1 2013 Q1 2012 Q1 2013 Q1 2012 Q1 2013 Actual Excluding net loss on derivative contracts 15 Copyright © 2013 Ormat Technologies, Inc.
Slide 16: Operating Income
Operating Income Total Electricity Segment Product Segment 25.7 22.1 15.9 13.1 9.9 9.0 8.5 Q1 2012 Q1 2013 Q1 2013 Q1 2012 Q1 2013 Q1 2013 Q1 2012 Q1 2013 Excluding items (0.5) Excluding items (A) and (B)* (A) and (B)* The decrease was principally attributable to: • Decrease in gross margin which wa
Slide 17: Interest Expense, Net
Interest Expense, Net Interest Expense, Net Gross Interest Expense Capitalized Interest +1.0 million (6.6 %) 18.3 18.6 14.9 15.9 3.4 2.7 Q1 2012 Q1 2013 Q1 2012 Q1 2013 Q1 2012 Q1 2013 Increase was primarily due to • $0.9 million increase in interest related to sale of tax benefit • $0.7 million in
Slide 18: Net Income (Loss) and Earnings (Loss) per Share
Net Income (Loss) and Earnings (Loss) per Share Net Income (Loss) Earnings (Loss) per Share $11.6 $8.0 $0.26 $0.17 Q1 2012 Q1 2013 Q1 2013 Q1 2012 Q1 2013 Q1 2013 ($1.9) Excluding items ($0.04) Excluding items (A) and (B)* (A) and (B)* The decrease in net income was principally attributable to: • $1
Slide 19: Adjusted EBITDA
Adjusted EBITDA Total Electricity Segment Product Segment - 5.7 million (11.1%) -7.3 million (17.7%) 1.5 million (14.6%) 51.5 45.7 41.1 33.8 10.4 11.9 Q1 2012 Q1 2013 Q1 2012 Q1 2013 Q1 2012 Q1 2013 Q1 2012 Q1 2013 D&A 24.7 23.1 All amounts in million USD; For EBITDA reconciliation see appendix 19 C
Slide 20: Cash, Cash Equivalents, Marketable Securities and Short Term Bank Deposits
Cash, Cash Equivalents, Marketable Securities and Short Term Bank Deposits 45.0 49.6 32.2 48.4 18.2 $69.6 14.7 11.9 5.2 4.0 $60.6 60.6 Q1 2012 Net proceeds Cash from Net proceeds Net proceeds Capital Net change in Repurchase Repayment of of Cash paid to the Q1 2013 from borrowers operating ORTP from
Slide 21: Payment of Principal Due by Period
Payment of Principal Due by Period Q2-2013 Q3-2013 Q4-2013 Year 2013 Long-term non-recourse debt & limited recourse debt 1,862 4,527 4,544 10,933 Senior Secured Notes (non-recourse) due 2020 10,342 1,160 15,396 26,898 Long-term loans (full recourse) 10,947 3,404 10,948 25,299 Total $23,151 $9,091 $3
Slide 22: Business Overview
Business Overview Dita Bronicki, CEO Green energy you can rely on Copyright © 2013 Ormat Technologies, Inc.
Slide 23: CapEx Needs & Sources for the Remainder of 2013
CapEx Needs & Sources for the Remainder of 2013 As of the end of March 31, 2013 CapEx Needs ($ millions) Sources of Capital ($ millions) 124 Construction of new projects & 61 Cash, cash equivalents and a short-term bank deposit enhancements1 15 Development of new projects 153 Unused corporate lines
Slide 24: Revenues Guidance for 2013
Revenues Guidance for 2013 Total revenues: between $515 and $535 million • Electricity Segment - between $335 and $345 million • Product Segment - between $180 and $190 million 24 Copyright © 2013 Ormat Technologies, Inc.
Slide 25: Summary
Summary • Achieved significant milestones that will further improve both segments performance • Strong balance sheet to support future growth plans (In millions, as of March 31, 2013) Cash1 $185 Principal payment for the remainder of 2013 $ 63 Corporate debt $447 (42%) Project Finance debt $626 (58%
Slide 26: Reconciliation of EBITDA and Additional Cash Flows Information
Reconciliation of EBITDA and Additional Cash Flows Information We calculate adjusted EBITDA as net income before interest, taxes, depreciation and amortization. Adjusted EBITDA is not a measurement of financial performance or liquidity under accounting principles generally accepted in the United Sta